The UK’s Competition and Markets Authority (CMA) has initiated a formal antitrust investigation into Amazon’s $4 billion investment in AI startup Anthropic. This development marks a significant escalation in regulatory scrutiny over Big Tech’s growing influence in the rapidly evolving artificial intelligence sector.
The CMA has declared it possesses sufficient evidence to warrant a Phase 1 investigation, setting an October 4 deadline to determine whether the deal requires a more in-depth Phase 2 probe. This action follows the regulator’s recent examination of Google’s affiliations with Anthropic and Microsoft’s investments in OpenAI and Inflection AI.
The CMA is concerned about the potential for “quasi-merger” tactics employed by tech giants like Amazon to dominate the AI landscape while circumventing regulatory oversight. These substantial investments could grant corporations control over startups without undergoing the rigorous scrutiny mandated for full-scale mergers.
Amazon has asserted that its investment in Anthropic does not pose any competition concerns and falls below the CMA’s threshold for review. The company maintains that the investment does not confer undue influence or control over the AI startup.
The Phase 1 investigation will allow the CMA 40 working days to decide if Amazon’s investment qualifies as a merger. If deemed a merger, the regulator will assess its potential to harm competition within the UK market.
This investigation adds to the growing list of regulatory inquiries targeting Big Tech’s partnerships with AI startups. The CMA is also scrutinizing Microsoft’s ties with OpenAI and its acquisition of the core team behind Inflection AI. As the AI industry continues to expand, it is evident that regulators are increasingly focused on ensuring fair competition and protecting consumer interests.
